How Electric Trucks,Big Data, and Connectivity

are Changing the Freight Industry

EPA SmartWay Freight Matters WebinarApril 26, 2018

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Global Freight Projected to

Double by 2050

Freight Fastest Growing Source of

Transport Emissions

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Presenters

Scott Perry

Suddath Global Logistics

Tim Proctor

Cummins

Larry Smith

Mitsubishi Fuso

Scott Perry

As president of Suddath Global Logistics, Scott leads new and emerging businesses, and guides multiple lines of business, each responsible for thousands of ground, air and ocean shipments, carrying millions of products on any given day. Scott is committed to assembling a skilled workforce capable problem solving, coordinating and managing complex supply chain operations worldwide.

Scott has more than 25 years’ experience in overseeing third-party logistics services and managing complex global and domestic supply chains. He is experienced with next-generation technology, product management, and strategy and integration of new technology into existing systems.

He served as chief operating officer at Nikola Motor Company, a technology company specializing in hydrogen fuel cell commercial vehicle manufacturing. Prior to that, he was chief technology and procurement officer for Ryder System, Inc.’s Fleet Management Solutions division, where he worked for more than 26 years in various operational and functional leadership roles in logistics and transportation. While there, Scott oversaw Ryder’s internal supply chain and the negotiation of primary supplier agreements around the world.

The Suddath CompaniesScott Perry - Global LogisticsHow Electric Trucks, Big Data, and

Connectivity are Changing the Freight Industry

The Suddath

Companies

1600 employees

16 domestic markets

2.7MM square feet of domestic warehouse space

Operation centers in London and Shanghai

NationwideLocations

Our Footprint

There have never been so many options for Logistics providers to consider!

• Advanced Technologies – electric, fuel cell, advanced diesel

• Connectivity – Telematics, RFID, Beacons

• Insights – Big Data, Virtual Reality, Augmented Reality

• Productivity & Safety- Autonomy, Platooning, ADAS, RPA

There are new brands entering the EV development race every day

• The Electronic Logging Device

mandate transforms fleet connectivity.

• Real-time data collection

• Asset sharing between companies

Connectivity Abounds

Considerations for any Fleet• Know your duty cycle

• Electronic Vehicles (EV’s) are purpose built

• Consider range, weight, charging networks

• Physical charging infrastructure is key• The larger the vehicle deployment,

the more critical this becomes

• Change Management• Drivers and operations personnel should

be part of the plan

Potential Immediate Benefits• Early adopters become industry leaders

• Growing final-mile market

• Understand Operating Cost/Benefits:

• Fuel/energy, maintenance, productivity, residual values

• Carbon footprint of EV affected markets

• Stay ahead of future emissions regulations

Thank You

Worldwide Headquarters

The Suddath Companies815 South Main StreetJacksonville, FL 32207800.395.7100suddath.com

We exist to

reimagine the way the

world moves

Tim Proctor

As Executive Director of Product Management & Market Innovation for Cummins Engine Business, Tim leads the segment’s efforts to see the future first and ensure that Cummins has its products positioned to win in the market in the short and long term.

Prior to assuming this role, Tim demonstrated his passion for innovation, leading the technical team that developed the 2017 X 15 engine for the North America on-highway market. This program delivered market leading fuel economy through base engine hardware changes and advanced controls solutions that extended Cummins’ impact beyond the flywheel and into the powertrain. It was also the first program to integrate deeply with connectivity and provide over the-air calibration update capability.

Since joining Cummins in 2005, Tim has played an instrumental role in the adoption of many of the systems engineering tools used widely throughout Cummins today. Previous to his work Cummins, Tim spent most of his career in the Motorsport industry, working at Cosworth Racing and Toyota Racing Development, where he drove the design and development of IndyCar engines and World Rally Car Engines.

How Electric Trucks, Big Data & Connectivity are Changing the Freight IndustryTim ProctorExecutive Director of Product Management and Market Innovation

Public

April 26, 2018

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a more prosperous world

Powering

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The world is changing.

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DIESEL

• Bio/ renewable fuels

• More than 300 miles a day• More than 60,000 miles annually• Average moving speed 50 to 60 mph• 5 to 40 percent idle time• 70 to 95 percent top gear time• Uptime is critical

DEFINING ATTRIBUTES OF LINE HAUL

Line Haul On-Highway Market

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Powertrain of nowD I E S E L

HD Long Haul

Delivers coast to coast500-600 miles/dayEmpty interstatesSteady cruise speeds–––––––––––––––––Unreliable accessto natural gas

N AT U R A L G AS

HD Regional Haul

Dedicated route; 200-300 miles/day––––––––––––––––––Access to economically-priced natural gas; Incentivized

Refuse Truck

Access to making the fuel cheapAir quality issues in service area

H Y B R I D

Utility Truck

Makes repairs at regional/local sites–––––––––––––––––During repair work, vehicle-to-grid power electronics provides power through battery/ engine to keep neighborhood in power

F U L L Y E L E C T R I C

Urban Transit Bus

Densely populated areaAir/noise quality issues ––––––––––––––––––––Electricity readily availablein route & at depot––––––––––––––––––––Lowers operation costs; Capital cost borne by FTA grant process

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PHASE 1 PHASE 2 PHASE 3

• Sociability need• Capability to use current technology• Suitable drive cycle• SubsidiesD

RIV

ER

SR

EG

ION

SE

XA

MP

LE

S

Moving now: Some key sectors (e.g. transit bus)

and niches of other sectors (e.g. drayage trucks)

• Improved technology• Wider local regulations• Some subsidies• Broader charging infrastructure

• High density urban cities (India, Eastern EU, etc.)

• ULE Zones in US, Western EU

Predominantly urban use

vehicles and equipment

• Viable economics• Further technology

breakthroughs

• Leapfrogging diesel emissions (Africa, South America)

• Traditional commercial vehicles

Wider scale adoption

• High density urban cities (London)• Emissions containment areas (LA

ports)• Industrial policy driven (China, etc.)

Phases of Electrification

2525

• Achieve near-zero well-to-wheel emissions• Increase safety for drivers & road users• Drive productivity and profitability of the industry

Objectives

• Solar, hydrogen & bio fuels – best environmental results• Carbon-based fuels – established infrastructures• Low-carbon fuels/highly efficient, ultra-low emission powertrains offer

significant short term improvements ahead of true zero carbon solutions

Diversification of Energy

Complicated answers to complicated problems

• Not just an electric-only truck• Hybrid solutions provide real-world TCO compared to full electric

vehicles

Electric powertrain

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Smart & Connected Trucks

Downtime

Offer improved:

Powertrain efficiency

Safety

Network performance

Product design

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The future requires many solutions

This is a period of transformative change.

Energy diversityis critical for a carbon-

constrained world.

Advancements in connectivity and automation will drive efficiencies further.

Larry Smith

Larry Smith is the Director of Fleet Operations for Mitsubishi Fuso Truck of America, a Daimler Brand Company. He has been with Mitsubishi Fuso Truck of America for the past 10 years, and most recently, over the past two years, has been the lead person for the company’s market development and launch of the eCanter battery electric truck in the US. He has been associated with the Commercial Truck & Equipment Industry for over 25 years and has previous held executive positions with Truck dealerships & OEM Diesel Engine distributors.

FUSO Electric Truck StrategyPresented by: Larry Smith

Director, Fleet Sales

Daimler AG

Three megatrends will define the future of electrification andcommercial vehicles

Urbanization Clean EnergyTechnology

Development

Daimler AG

FUSO is a Pioneer in All-Eletric Trucks.

2017

2016 2020

FUSO eCanter at the IAA in Hannover 2016

First small series production started

eCanter fullseries launch

2014

2015

Canter E-CellPre-series production

Canter E-CellStuttgart fleet test

Daimler AG

The FUSO eCanter is the Frontrunner in Electric Trucks

eCanter 1.0 (2017)

Battery:+ 6 parallel connect batteries+ 1-2 hour DC quick charge or 8-hour AC charge

E motor+ E motor connected to conventional propeller

shaft

Drive Train Specification

+ Class 4 truck+ 9,380 payload capacity (est.)+ 100% electric – zero tailpipe emissions+ 60 to 80 miles range

Product Highlights

eCanter: The Best-in-Class City Truck with in-house battery technology and a wide sales and established service network

Infrastructure Support• Wide knowledge of charging

technology

• Support to install and extend charging grids (MB Energy)

Wide service network• With >10,000 sales and service

points world wide, best in class service is assured

Synergy with MB EQ• Electric parts have synergy with

Mercedes-Benz EQ cars

• Daimler with eCars already in market

In-House Battery• Deutsche Accumotive: Advanced

battery expertise

• In-house battery: pushing further battery cost reductions

TCO SavingsOverall TCO savings vs Diesel

City EntryPerfect character for inner-city

Low Noise LevelNo noisy internal combustion

AccelerationIndustry leading acceleration

Fuso is working to bring a connected charging ecosystem to our customers, leveraging MB tech & key partnerships

eCanter Mobile App

eCanter Mobile App is focused on ease of use and will let users:

• Find the closest charging stations

• See prices & make reservations

• Filter for truck friendly stations

Intelligent Charging

Fuso will use our TRUCKONNNECT platform to support customers with:

• Data collection & driving habits

• Prioritization of fleet charging

• Improved charging procedure

Energy Consultation

Fuso leverages its links to MB to offer customers advanced services in:

• Driving route optimization

• Minimizing electrical consumption

• Minimization of depot infrastructure

Charging Infrastructure

Fuso is also focused on hardware bringing:

• AC level 2 cables as standard

• DC charging stations as needed

• Standardized charging solutions

Daimler AG

Three key take-aways

The electrification of trucks will be an important driver

for cleaner cities

FUSO is the Frontrunner in electric trucks and launches the world’s first all-electric truck in series production.

The electric ecosystem has to be created in partnership with

customers, technology companies and

municipalities

Daimler AG

Thank You Very Much

THANK YOU!

QUESTION & ANSWER